[Exclusive] BangsaCheong Pursues Private Contract with Company Leaking Military Secrets [Yang Nakgyu's Defence Club]

Obtained Internal Document from BangsaCheong 'Plan for Destroyer Project Promotion'
Intent to Proceed with Private Contract with HD Hyundai Heavy Industries Due to Confidential Leak

The Defense Acquisition Program Administration (DAPA) has been confirmed to be internally pushing for a sole-source contract regarding the Korean next-generation destroyer (hereinafter KDDX) project. To build the warship, after the basic design, the detailed design and lead ship construction projects must proceed, but controversy is expected as defense companies that leaked military secrets appear likely to consecutively win the contracts.

According to the internal DAPA document obtained by this outlet on the 8th, titled "Destroyer Project Promotion Plan (photo)," it states, "Since the opening of DAPA, all 18 warship research and development projects have been conducted through sole-source contracts, with the basic design company carrying out the detailed design and lead ship construction." It further adds, "HD Hyundai Heavy Industries completed the basic design normally in November last year and received a combat suitability certification." In particular, it notes, "Related regulations stipulate that unless there are special reasons, the work should continue." This is interpreted to mean that HD Hyundai Heavy Industries, which won the basic design contract, will also proceed with sole-source contracts for the subsequent projects. On the 2nd, when controversy arose over the sole-source contract with HD Hyundai Heavy Industries, DAPA sent a text message to defense reporters stating, "The project promotion plan has not been finalized," which contrasts with the current internal stance.

The KDDX project involves constructing a total of six ships with a budget of 7.8 trillion won. Employees of HD Hyundai Heavy Industries were caught leaking military secrets. Between 2013 and 2014, HD Hyundai Heavy Industries employees leaked over ten classified items, including two KDDX secrets from the Navy Headquarters, as well as secrets related to the next-generation submarine and special warfare support ships. Nine employees of HD Hyundai Heavy Industries were convicted by the Supreme Court in November last year for violating the Military Secrets Protection Act (Military Criminal Act). However, DAPA allowed HD Hyundai Heavy Industries to bid on the project, judging that there was no evidence of involvement by representatives or executives.

Hanwha Ocean filed a police complaint alleging executive involvement during the illegal activities of HD Hyundai Heavy Industries employees. The related investigation is currently ongoing, and DAPA stated in the internal document, "Regarding the ongoing investigation due to complaints between shipbuilding companies related to violations of the Military Criminal Act, actions will be taken according to the investigation results." For now, DAPA plans to sign a sole-source contract with HD Hyundai Heavy Industries for the KDDX detailed design and lead ship construction projects and monitor the police investigation.

Professor Choi Ki-il of Sangji University said, "Strict standards must be established and applied to defense companies that leak military secrets," adding, "A precedent should not be set that allows participation in the defense industry even if the Military Criminal Act is violated."